China Synthetic Rubber Corporation 2018 Annual General Meeting

China Synthetic Rubber Corporation 2018 Annual General Meeting

Stock Code: 2104 MOPs Website: http: //mops.twse.com.tw/mops/web/index China Synthetic Rubber Corporation website Website: http: //www.csrcgroup.com China Synthetic Rubber Corporation 2018 Annual General Meeting Handbook Time: 9:00 a.m., Tuesday, June 26, 2018 Location: 3F., No.113, Sec. 2, Zhongshan N. Rd., Zhongshan Dist., Taipei City (Shimin Hall, Taiwan Cement Building)

Table of Contents Rules of Procedure for Annual General Meetings . . 1 Meeting Agenda . . 3 Matters to Report . . 5 Matters for Approval . . 28 Matters for Discussion . . 30 Matters for Election .

36 Matters for Discussion . ... 37 Ad Hoc Motions . . 38 Meeting Adjourned . . 38 Annex 1: 2017 Profit Distribution Table . . 39 Annex 2: Carbon Black Business Spin-Off Plan ... ... 40 Annex 3: Biotechnology Business Spin-Off Plan ... ... 52 Annex 4: Comparison of the Articles of incorporation before and after the amendment . . 68 Annex 5:List of candidates and the related information ... ... 72 Annex 6 : List of Releasing Director Candidates from Non-Competition Restriction . . 75 Annex 7: Company Corporate Charter ... ... 76 Annex 8:Regulations for China Synthetic Rubber Corporation Director Elections .

81 Annex 9: Directors’ Shareholding Status ... ... 83 Annex 10: The Impact of This Stock Grant on the Company's Operating Performance, Earnings per Share, and Shareholders' Return on Equity...84

1 - Rules of Procedure for China Synthetic Rubber Corporation Shareholders Meeting Amended by regular shareholders meeting on June 24, 2014 1. The shareholders meeting of the company shall, except those stipulated in the ordinance otherwise, follow these rules. 2. The shareholders meeting should provide an attendee register for the shareholders to sign in or the attending shareholders shall hand in the sign-in cards in place of sign-in. The number of shares in attendance is calculated based on the attendee register or signin cards handed in and the number of shares in the voting rights submitted in writing or electronically.

3. The attendance and vote of the shareholders meeting shall be calculated on the basis of shares. 4. The place of the shareholders meeting shall be the place where the company is located or where is convenient for the shareholders to be present and suitable for the meeting of the shareholders. The meeting shall start no earlier than 9 am or later than 3 pm. 5. The shareholders meeting convened by the board of directors shall be chaired by the chairman. When the chairman is absent, the chairman designates one director as agent. If the chairman does not appoint an agent, an agent will be chosen by the directors.

If the shareholders meeting is convened by a convener with calling rights other than the board of directors, the chairman is assumed by the convener of calling right. If there are two or more conveners of calling right, one person should be elected to assume the post. 6. The lawyers, accountants or related personnel appointed by the company may attend the shareholders meeting.

The meeting affair personnel handling the shareholders meeting should wear identification cards or armbands. 7. The process of the shareholders meeting should be recorded or videotaped throughout the process and kept for at least one year. 8. When the time of the meeting arrives, the chairman announces to start the meeting. However, when no shareholders representing more than half of the total number of issued shares are present, the chairman may announce a delay in the meeting. The number of delays shall be limited to twice, and the total delay time shall not exceed one hour. If the second time is still insufficient and the shareholders representing more than one-third of the total number of issued shares are not present, it may be deemed to be false resolution in accordance with the subparagraph 1 of Article 175 of the Company Act.

Before the end of the current meeting, if the number of shares represented by the shareholders attending the meeting exceeds half of the total number of issued shares, the chairman may re-submit the created false resolution to the meeting to be voted on according to Article 174 of the Company Act. 9. The agenda of shareholders meeting convened by the board of directors is set by the board of directors. The meeting shall be conducted in accordance with the scheduled agenda and may not be changed without resolution.

If the shareholders meeting is convened by a convener of calling right other than the board of directors, the provisions of the preceding subparagraph may apply.

Before the agenda of the first two subparagraphs is finalized (including the provisional motion), the chairman would not be allowed to announce the adjournment without resolution. After the meeting is adjourned, the shareholders must not elect another chairman to continue the meeting at the original site or another site.

2 - 10. Before an attending shareholder speaks, the speech notes should be filled out with the speech gist, the shareholder number (or attendance card number) and the account name, and the chairman should set the order of his speech. Attending shareholders who present the speech notes alone but do not speak are considered as not speaking. If the content of the speech is inconsistent with the record of the speech notes, the content of the speech shall prevail. When the attending shareholders speak, other shareholders may not interfere with the speech except with the consent of the chairman and the speaking shareholders, and the chairman shall stop the violators.

11. In the same motion, each shareholder's speech may not exceed two times without the consent of the chairman and shall not exceed five minutes at a time. If the shareholder makes a speech that violates the provisions of the preceding subparagraph or exceeds the scope of the topic, the chairman may stop his speech. 12. When a legal person is entrusted to attend a shareholders meeting, the legal person may only appoint one person to attend as agent. When a legal person shareholder appoints more than two representatives to attend the shareholders meeting, only one person may speak for the same motion.

13. After the attending shareholder's speech, the chairman may reply in person or by designating the relevant person.

14. In the discussion of the motion, when the chairman thinks that the degree of voting has been reached, he may announce that he will stop the discussion and put it to the vote. 15. The scrutineer and the vote counting personnel for the vote on the motion shall be designated by the chairman. The scrutineers should have the status of shareholders. The results of the vote shall be reported on site and recorded. 16. In the course of the meeting, the chairman may declare a rest at a time of his discretion. 17. When the company convenes a shareholders’ meeting, it is likely to exercise the voting rights in writing or electronically.

The relevant exercise methods are governed by the Company Act and the regulations of the competent authority.

The voting of the motion shall be passed with the consent of more than half of the voting rights of the shareholders present unless otherwise provided in the Company Act and the Articles of Association of the Company. In case of a vote, if no objection is raised via the chairman’s query, it is deemed as passing. The effect is the same as that of a vote. 18. When there are amendments or alternatives to the same motion, the chairman sets the voting order in conjunction with the original case. If one of the cases has been passed, other motions will be considered vetoed and no further voting will be required.

19. The chairman may command pickets (or security personnel) to help maintain order at the venue. When pickets (or security personnel) are present to help maintain order at the scene, they should wear the “picket” armbands.

20. These rules will be implemented after approval by the shareholders meeting, which applies to any amendments thereto.

3 China Synthetic Rubber Corporation 2018 Annual General Meeting Agenda Time: 9:00 a.m., Friday, June 26, 2018 Location: 3F., No.113, Sec. 2, Zhongshan N. Rd., Zhongshan Dist., Taipei City (Shimin Hall, Taiwan Cement Building) 1. Commencement of the Meeting 2. Chairman’s Statement 3. Matters to Report (1) Report on 2017 Employees' and Directors' Compensation (2) To report the Business and Financial Statements of 2017 (3) Audit Committee’s Review Report 4.

Matters for Approval (1) To approve 2017 Annul Business Report and Financial Statements. (2) To approve 2017 profit Distribution Proposal 5. Matters for Discussion (1) Proposal for a new share issue through capitalization of earnings. (2)Spin-off of the domestic Carbon Black Business (including assets, liabilities and business).

(3)Spin-Off of the Biotechnology Business (including assets, liabilities and business). (4)The Company proposed to transform into an investment holding company through spin-off transactions and be renamed accordingly. (5)To amend the certain articles of the Company's "Articles of Incorporation". (6)Proposal for amendment to title of the Company’s regulations such as Rules of Procedure for Shareholders Meeting. (7)Proposal for distribution of souvenir for Annual Shareholders Meeting

4 6. Matters for Election To elect seven directors of the 17th term Board.

(including three independent directors) 7. Matters for Discussion (8) Proposal to release the newly-elected Directors from non-competition. 8. Ad Hoc Motions 9. Meeting Adjourned

5 Matters to Report (1) Report on the 2017 employees’and directors’compensation of the Company. Description: 1. According to Article 28 of the Articles of Incorporation, if the Company has surplus, it shall (i) set aside 0.01%~3% for employees’ compensation; and (ii) set aside no more than 1% as directors’ compensation. 2. The proposal has been approved by the 23rd meeting of the 16th term Board of Directors. The company distribute surplus in the amount of NT$ 8,000,000 as employees’ compensation and distributed surplus in the amount of NT$ 27,000,000 as directors’ compensation.

6 (2) 2017 Business and financial report [Business Report] The global economy entered into upward cycle in 2017.

The developed-countries led the recovery, and unleashed investment, trade, and industrial production, growth and the global economic growth appeared solid and certain. However, we are still encountered challenges and uncertainties, such as environment awareness rising in emerging countries, supply-side reforming, trade protectionism for some countries, and volatility in raw material prices due to geopolitical uncertainty. Although oversupply in carbon black industry remains the same, CSRC’s financial performance in 2017 exceeded 2016 via lowing costs and improving efficiency, based on result-oriented business philosophy.

We embrace change and learn passionately. Besides, CSRC will keep developing high-valued energy-storage battery product and application, developing new market with tier one customers, and implementing energysaving production facility to enhance competitive advantages.

1. Production: The production quantity of carbon black is 490k metric ton. 2. Revenue:  Stand-alone: Sales revenue reaches NTD 4.12 billion in stand-alone audited report.  Consolidated: Sales revenue reaches NTD 20.11 billion in consolidated audited report. 3. Profit:  Stand-alone: The stand-alone net income reaches NTD 2.27 billion, YoY grows 55%, over annual budget 133%.  Consolidated: The consolidated net income reaches NTD 2.34 billion, YoY grows 63%, over annual budget 141%. Chairman: Chang, An-Ping President: Po Sung Huang Accounting Supervisor: Lin, Kuei-Yu

7 Financial statement 106 年 及 105 年 12 月 31 106 年 及 105 12 月 31 表、個 表,以 註( ,上 製,足 106 年 及 105 年 12 月 31 106 年 及 105 12 月 31 範,與 立,並 任。本 據,以 。

8 106 106 106 年 12 月 31 10,721,045 49%。 損,因 是 其 不 動 產、廠 評估 是 否具 有資 產 減損 之 可能。 不 動 產、廠 額( )評 估,市 額,因 計,其 估 計 之 方 法將 影 響資 產減 損 結果 之 判斷, 產、廠 策、會 中,民 國 106 年 及 105 年 12 月 31 日 之 CCC USA Corp.及 106 年 及 105 年 12 月 31 1,294,443 仟 元 及 1,346,618 6%及 7%; 民 國 106 及 105 55,267 仟 元 及 81,467 仟 元,分 2%及 4% 。

9 表,且 制,以 力、相 露,以 用, 位( )負 信,並 告。合 達。不 誤。如 1. 礎。因 謀、偽 造、故 意 遺 漏、不 2. 3. 4. 據,對 性,以 性,作 出 結 論。本 或

10 露,或 見。 5. 表( )之 整 體 表 達、結 構 及 內 容,以 6. 據,以 見。本 會 計師 負 責查 核案 件 之指 導、 項,包 間,以 106 項,除 項,或 下,本 。

11 106 年 及 105 年 12 月 31 106年12月31日 105年12月31日 流動資產 1100 現金及約當現金(附註四及六) $ 3,374,173 16 $ 1,932,231 9 1110 透過損益按公允價值衡量之金融資產-流動(附註四及七) 936,776 4 1,234,316 6 1125 備供出售金融資產-流動(附註四及八) 1,499,284 7 1,399,332 7 1170 應收帳款-淨額(附註四及十) 262,760 1 197,540 1 1180 應收帳款-關係人(附註四、十及二七) 397,958 2 359,587 2 130X 存貨(附註四及十一) 159,397 1 251,275 1 1476 其他金融資產-流動(附註二七及二八) 50,092 - 121,688 1 1479 其他流動資產 4,344 - 1,994 - 11XX 流動資產總計 6,684,784 31 5,497,963 27 非流動資產 1523 備供出售金融資產-非流動(附註四及八) 3,210,996 15 3,092,551 16 1543 以成本衡量之金融資產-非流動(附註四及九) 260,748 1 262,131 1 1550 採用權益法之投資(附註四、五及十二) 10,721,045 49 10,249,963 51 1600 不動產、廠房及設備(附註四及十三) 784,281 4 821,060 4 1760 投資性不動產(附註四及十四 - 167,158 1 1840 遞延所得稅資產(附註四及二一) 15,211 - 14,242 - 1915 預付設備款 - - 10,981 - 1980 其他金融資產-非流動 2,562 - 2,506 - 1990 其他非流動資產 1,775 - 2,642 - 15XX 非流動資產總計 14,996,618 69 14,623,234 73 1XXX 21,681,402 100 $ 20,121,197 100 流動負債 2100 短期借款(附註十五 $ 43,255 - 2170 應付帳款(附註十六) 122,720 1 92,485 - 2180 應付帳款-關係人(附註二七) 93,522 - 83,644 - 2219 其他應付款(附註十七及二七) 689,666 3 385,144 2 2230 本期所得稅負債(附註四及二一) 30,331 - 106,600 1 2399 其他流動負債 4,274 - 973 - 21XX 流動負債總計 940,513 4 712,101 3 非流動負債 2550 負債準備-非流動(附註四及十八) 10,213 - 4,204 - 2570 遞延所得稅負債(附註四及二一) 1,059,135 5 836,543 4 2640 淨確定福利負債(附註四及十八) 8,476 - 26,003 - 2670 其他非流動負債 80,518 1 78,460 1 25XX 非流動負債總計 1,158,342 6 945,210 5 2XXX 負債總計 2,098,855 10 1,657,311 8 權 益(附註四及十九) 3110 普 通 股 6,285,870 29 5,986,543 30 3200 資本公積 3,713,759 17 3,694,767 18 保留盈餘 3310 法定盈餘公積 2,064,398 9 1,917,297 9 3320 特別盈餘公積 645,316 3 648,929 3 3350 未分配盈餘 4,256,084 20 3,329,086 17 3300 保留盈餘總計 6,965,798 32 5,895,312 29 3400 其他權益 2,907,208 13 3,177,352 16 3500 庫藏股票 ( 290,088 290,088 ) ( 1 ) 3XXX 權益總計 19,582,547 90 18,463,886 92 21,681,402 100 $ 20,121,197 100 107 年 3 月 28 玉

12 106 年 及 105 12 月 31 106年度 105年度 4000 營業收入淨額(附註四及二 七) $ 4,123,195 100 $ 3,600,130 100 5000 營業成本(附註四、十一、 十八、二十及二七) 2,519,053 61 2,112,804 59 5900 營業毛利 1,604,142 39 1,487,326 41 5910 與子公司之未實現(利益) 損失 ( 219) - 192 - 5920 與子公司之已實現損失 ( 192 ( 391) - 5950 已實現營業毛利 1,603,731 39 1,487,127 41 營業費用(附註十八、二十 及二七) 6100 推銷費用 76,050 2 72,106 2 6200 管理費用 184,119 5 95,074 2 6300 研究發展費用 304,497 7 59,844 2 6000 營業費用合計 564,666 14 227,024 6 6900 營業淨利 1,039,065 25 1,260,103 35 營業外收入及支出(附註 四、二十及二七) 7010 其他收入 273,232 7 290,394 8 7020 其他利益及損失 ( 98,072) ( 2) ( 100,085) ( 3) 7050 財務成本 ( 1,263 ( 1,452) - 7070 採用權益法認列之子公 司利益份額 1,539,150 37 418,315 12 7000 營業外收入及支出 合計 1,713,047 42 607,172 17 ( 接 次 頁 )

13 106年度 105年度 7900 本年度稅前淨利 $ 2,752,112 67 $ 1,867,275 52 7950 所得稅費用(附註四及二 一) ( 478,684) ( 12) ( 396,265) ( 11) 8200 本年度淨利 2,273,428 55 1,471,010 41 其他綜合損益(附註四及十 八) 8310 不重分類至損益之項目 8311 確定福利計畫之再 衡量數 ( 4,527) - 1,181 - 8330 採用權益法之子公 司之其他綜合損 益份額 ( 1,034 ( 2,487) - 8360 後續可能重分類至損益 之項目 8361 國外營運機構財務 報表換算之兌換 差額 ( 505,408) ( 12) ( 173,675) ( 5) 8362 備供出售金融資產 未實現評價損益 218,397 5 815,235 23 8380 採用權益法之子公 司之其他綜合損 益份額 16,867 - 142,734 4 8300 其他綜合損益 ( 275,705) ( 7) 782,988 22 8500 本年度綜合損益總額 $ 1,997,723 48 $ 2,253,998 63 每股盈餘(附註二二) 來自繼續營業單位 9750 基 本 $ 3.69 $ 2.39 9850 稀 釋 $ 3.69 $ 2.39 107 年 3 月 28 玉

14 106 年 及 105 12 月 31 (附註四及十九) 權 益 總 額 A1 105 年 1 月 1 日餘額 598,654 $ 5,986,543 $ 3,792,857 $ 1,832,233 $ 648,929 $ 2,659,586 $ 375,800 $ 2,017,258 ( $ 290,088 ) $ 17,023,118 104 年度盈餘指撥及分配 B1 提列法定盈餘公積 - 85,064 - ( 85,064 - B5 股東紅利-現金,每股 1.15 元 ( 688,452 ( 688,452 ) 分配後餘額 598,654 5,986,543 3,792,857 1,917,297 648,929 1,886,070 375,800 2,017,258 ( 290,088 ) 16,334,666 M1 發放予子公司股利調整資本公積 - - 12,983 - 12,983 M5 實際取得子公司部分權益 ( 111,073 ( 26,688 ( 137,761 ) D1 105 年度淨利 - 1,471,010 - 1,471,010 D3 105 年度其他綜合損益 ( 1,306 ) ( 173,675 ) 957,969 - 782,988 D5 105 年度綜合損益總額 - 1,469,704 ( 173,675 ) 957,969 - 2,253,998 Z1 105 年 12 月 31 日餘額 598,654 5,986,543 3,694,767 1,917,297 648,929 3,329,086 202,125 2,975,227 ( 290,088 ) 18,463,886 105 年度盈餘指撥及分配 B1 提列法定盈餘公積 - 147,101 - ( 147,101 - B5 股東紅利-現金,每股 1.5 元 ( 897,981 ( 897,981 ) B9 股東紅利-股票,每股 0.5 元 29,933 299,327 ( 299,327 - 分配後餘額 628,587 6,285,870 3,694,767 2,064,398 648,929 1,984,677 202,125 2,975,227 ( 290,088 ) 17,565,905 M1 發放予子公司股利調整資本公積 - - 16,934 - 16,934 M5 處分子公司股權價格與帳面價值差額 - - 2,058 - 2,058 M7 對子公司所有權權益變動 ( 73 ( 73 ) B17 特別盈餘公積迴轉 ( 3,613 ) 3,613 - D1 106 年度淨利 - 2,273,428 - 2,273,428 D3 106 年度其他綜合損益 ( 5,561 ) ( 505,408 ) 235,264 - ( 275,705 ) D5 106 年度綜合損益總額 - 2,267,867 ( 505,408 ) 235,264 - 1,997,723 Z1 106 年 12 月 31 日餘額 628,587 $ 6,285,870 $ 3,713,759 $ 2,064,398 $ 645,316 $ 4,256,084 ( $ 303,283 ) $ 3,210,491 ( $ 290,088 ) $ 19,582,547 107 年 3 月 28 玉

15 106 年 及 105 12 月 31 106年度 105年度 營業活動之現金流量 A10000 本年度稅前淨利 $ 2,752,112 $ 1,867,275 A20010 收益費損項目 A20100 折舊費用 80,316 81,140 A20200 攤銷費用 675 1,618 A20400 透過損益按公允價值衡量之金 融資產利益 ( 2,460) ( 2,784 ) A20900 利息費用 812 1,093 A21200 利息收入 ( 10,231) ( 7,841 ) A21300 股利收入 ( 201,408) ( 209,467 ) A22400 採用權益法認列之子公司利益 份額 ( 1,539,150) ( 418,315 ) A22500 不動產、廠房及設備報廢損失 7 8,191 A22700 處分投資性不動產利益 ( 270,125) - A23100 處分投資利益 ( 772) ( 616 ) A23500 金融資產減損損失 1,383 - A23700 非金融資產減損損失(回升利 益) 110,916 ( 24,599 ) A23900 與子公司之未實現利益(損 失) 219 ( 192 ) A24000 與子公司之已實現損失 192 391 A24100 未實現外幣兌換損失(利益) 15,260 ( 3,717 ) A29900 處分子公司利益 ( 7,637) - A30000 與營業活動相關之資產/負債變動 數 A31110 持有供交易之金融資產 300,772 ( 569,384 ) A31150 應收帳款 ( 67,152) 95,387 A31160 應收帳款-關係人 ( 48,114) ( 33,529 ) A31200 存 貨 91,878 4,119 A31240 其他流動資產 ( 2,350) 740 A31250 其他金融資產-流動 68,662 ( 19,207 ) A32150 應付帳款 30,239 12,383 A32160 應付帳款-關係人 9,890 ( 12,228 ) A32180 其他應付款 304,716 116,917 A32200 負債準備 1,097 ( 163 )

16 106年度 105年度 A32230 其他流動負債 $ 3,301 ($ 512 ) A32240 淨確定福利負債 ( 22,054) ( 11,037 ) A33000 營運產生之現金流入 1,600,994 875,663 A33100 收取之利息 9,786 7,655 A33500 支付之所得稅 ( 333,330) ( 306,453 ) AAAA 營業活動之淨現金流入 1,277,450 576,865 投資活動之現金流量 B02200 取得子公司之淨現金流出 ( 195,143) ( 2,345,213 ) B01900 處分子公司之淨現金流入 180,233 - B02700 取得不動產、廠房及設備 ( 38,828) ( 53,513 ) B05500 處分投資性不動產 437,006 - B06600 其他金融資產-非流動減少 ( 56) ( 1,138 ) B07100 預付設備款減少(增加) 10,981 ( 3,781 ) B07600 收取之股利 710,198 942,142 BBBB 投資活動之淨現金流入(流 出) 1,104,391 ( 1,461,503 ) 籌資活動之現金流量 C00100 短期借款減少 ( 43,477) ( 15,764 ) C04400 其他非流動負債增加 2,058 4,505 C04500 發放現金股利 ( 897,981) ( 688,452 ) C05600 支付之利息 ( 499) ( 682 ) CCCC 籌資活動之淨現金流出 ( 939,899) ( 700,393 ) EEEE 本年度現金及約當現金增加(減少)數 1,441,942 ( 1,585,031 ) E00100 年初現金及約當現金餘額 1,932,231 3,517,262 E00200 年底現金及約當現金餘額 $ 3,374,173 $ 1,932,231 107 年 3 月 28 玉

17 106 年 及 105 年 12 月 31 106 年 及 105 12 月 31 表、合 表、合 表,以 註( ,上 則、國 際 會 計 準 則、解 製,足 106 年 及 105 年 12 月 31 106 年 及 105 12 月 31 範,與 立,並 任。本 據,以 項

18 106 106 106 年 12 月 31 11,790,860 32%。 損,因 是 其 不 動 產、廠 能。不 動 產、廠 額( 使用 價值 之 較高 者 )評 估, 計,其 斷,是 產、廠 策、會 106 年 及 105 年 12 月 31 日 之 CCC USA Corp.及 106 年 及 105 年 12 月 31 8,671,677 仟 元 及 5,585,904 24%及 18%; 民 國 106 及 105 5,357,310 仟 元 及 4,200,064 27%及 26%。

19 106 及 105 則、國 際 會 計 準 則、解 力、相 露,以 位( )負 信,並 告。合 達。不 誤。如 1. 礎。因 謀、偽 造、故 意 遺 漏、不 2. 。

20 3.

4. 據,對 性,作 出 結 論。本 5. 表( )之 整 體 表 達、結 構 及 內 容,以 6. 見。本 導、監 督 及 執 行,並 項,包 間,以 106 項,除 項,或 下,本 項,因 。

21 106 年 及 105 年 12 月 31 106年12月31日 105年12月31日 流動資產 1100 現金及約當現金(附註四及六) $ 8,486,360 23 $ 6,226,264 20 1110 透過損益按公允價值衡量之金融資產-流動(附註四及七) 944,828 3 1,242,338 4 1125 備供出售金融資產-流動(附註四及八) 2,326,682 6 2,021,471 6 1150 應收票據淨額(附註四、十及三三) 485,778 1 239,436 1 1170 應收帳款淨額(附註四、十及三三) 4,167,951 12 3,400,118 11 1180 應收帳款-關係人(附註四及三二) 4,165 - 4,669 - 1220 本期所得稅資產(附註四及二四) 13,736 - 4,500 - 130X 存貨(附註四、十一及三三) 2,267,535 6 1,955,317 6 1412 預付租賃款(附註十六) 6,503 - 6,636 - 1476 其他金融資產—流動(附註三三) 150,725 - 265,270 1 1479 其他流動資產(附註十七) 578,091 2 524,807 2 11XX 流動資產總計 19,432,354 53 15,890,826 51 非流動資產 1523 備供出售金融資產-非流動(附註四、八及三三) 3,248,972 9 3,141,683 10 1543 以成本衡量之金融資產-非流動(附註四及九) 310,743 1 331,904 1 1600 不動產、廠房及設備(附註四、五、十二及三三) 11,790,860 32 10,272,186 33 1760 投資性不動產(附註四及十三) 408,998 1 167,158 1 1805 商譽(附註四及十四) 232,332 1 374,463 1 1821 其他無形資產(附註四及十五) 297,593 1 350,272 1 1840 遞延所得稅資產(附註四及二四) 294,854 1 37,265 - 1915 預付設備款 4,009 - 19,996 - 1980 其他金融資產-非流動 21,516 - 14,925 - 1985 長期預付租賃款(附註十六) 238,992 1 250,476 1 1990 其他非流動資產(附註四、十七及二一) 62,439 - 79,685 1 15XX 非流動資產總計 16,911,308 47 15,040,013 49 1XXX 36,343,662 100 $ 30,930,839 100 流動負債 2100 短期借款(附註十八及三三) $ 5,357,830 15 $ 4,035,495 13 2110 應付短期票券(附註十八) 249,992 1 184,828 1 2170 應付帳款(附註十九) 1,096,027 3 867,035 3 2180 應付帳款-關係人(附註三二) 95,061 - 84,280 - 2219 其他應付款(附註二十及三二) 1,245,030 4 922,507 3 2230 本期所得稅負債(附註四及二四) 54,340 - 108,760 - 2320 一年內到期之長期負債(附註十八及三三) 789,317 2 717,572 2 2399 其他流動負債 79,251 - 57,147 - 21XX 流動負債總計 8,966,848 25 6,977,624 22 非流動負債 2540 長期借款(附註十八及三三) 5,259,205 15 3,385,447 11 2550 負債準備-非流動(附註四及二一) 10,213 - 4,204 - 2570 遞延所得稅負債(附註四及二四) 1,477,532 4 983,647 3 2640 確定福利負債(附註四及二一) 120,876 - 153,043 1 2670 其他非流動負債 42,192 - 35,926 - 25XX 非流動負債總計 6,910,018 19 4,562,267 15 2XXX 負債總計 15,876,866 44 11,539,891 37 歸屬於母公司業主之權益(附註四及二二) 3110 普 通 股 6,285,870 18 5,986,543 20 3200 資本公積 3,713,759 10 3,694,767 12 保留盈餘 3310 法定盈餘公積 2,064,398 5 1,917,297 6 3320 特別盈餘公積 645,316 2 648,929 2 3350 未分配盈餘 4,256,084 12 3,329,086 11 3300 保留盈餘總計 6,965,798 19 5,895,312 19 3400 其他權益 2,907,208 8 3,177,352 10 3500 庫藏股票 ( 290,088 290,088 ) ( 1 ) 31XX 本公司業主之權益總計 19,582,547 54 18,463,886 60 36XX 非控制權益 884,249 2 927,062 3 3XXX 權益總計 20,466,796 56 19,390,948 63 36,343,662 100 $ 30,930,839 100 107 年 3 月 28 玉

22 106 年 及 105 12 月 31 106年度 105年度 4000 營業收入淨額(附註四及三 二) $ 20,113,757 100 $ 15,889,067 100 5000 營業成本(附註十一、二 一、二三及三二) 14,544,257 72 11,318,871 71 5900 營業毛利 5,569,500 28 4,570,196 29 營業費用(附註二一、二三 及三二) 6100 推銷費用 388,929 2 491,453 3 6200 管理費用 907,224 5 821,192 5 6300 研究發展費用 632,509 3 322,570 2 6000 營業費用合計 1,928,662 10 1,635,215 10 6900 營業淨利 3,640,838 18 2,934,981 19 營業外收入及支出(附註 四、十二及二三) 7010 其他收入 337,734 2 370,757 2 7020 其他利益及損失 ( 118,527 ) ( 1) ( 360,042) ( 2) 7050 財務成本 ( 294,832 ) ( 1) ( 308,140) ( 2) 7000 營業外收入及支出 合計 ( 75,625 ( 297,425) ( 2) 7900 本年度稅前淨利 3,565,213 18 2,637,556 17 7950 所得稅費用(附註四及二 四) ( 1,264,827 ) ( 6) ( 1,223,842) ( 8) 8200 本年度淨利 2,300,386 12 1,413,714 )

23 106年度 105年度 其他綜合損益 8310 不重分類至損益之項目 8311 確定福利計畫之再 衡量數 ($ 5,545 $ 2,528) - 8360 後續可能重分類至損益 之項目 8361 國外營運機構財務 報表換算之兌換 差額 ( 572,061 ) ( 3) ( 188,391) ( 1) 8362 備供出售金融資產 未實現損益 232,177 1 958,176 6 8300 其他綜合損益 ( 345,429 ) ( 2) 767,257 5 8500 本年度綜合損益總額 $ 1,954,957 10 $ 2,180,971 14 淨利歸屬於: 8610 母公司業主 $ 2,273,428 11 $ 1,471,010 9 8620 非控制權益 26,958 - ( 57,296) - 8600 $ 2,300,386 11 $ 1,413,714 9 綜合損益總額歸屬於: 8710 母公司業主 $ 1,997,723 10 $ 2,253,998 14 8720 非控制權益 ( 42,766 ( 73,027) - 8700 $ 1,954,957 10 $ 2,180,971 14 每股盈餘(附註二五) 來自繼續營業單位 9710 基 本 $ 3.69 $ 2.39 9810 稀 釋 $ 3.69 $ 2.39 107 年 3 月 28 玉

24 106 年 及 105 12 月 31 A1 105 年 1 月 1 日餘額 $ 5,986,543 $ 3,792,857 $ 1,832,233 $ 648,929 $ 2,659,586 $ 375,800 $ 2,017,258 ( $ 290,088 ) $ 17,023,118 $ 993,942 $ 18,017,060 104 年度盈餘指撥及分配 B1 提列法定盈餘公積 - - 85,064 - ( 85,064 - B5 股東紅利-現金,每股 1.15 元 ( 688,452 ( 688,452 ( 688,452 ) 分配後餘額 5,986,543 3,792,857 1,917,297 648,929 1,886,070 375,800 2,017,258 ( 290,088 ) 16,334,666 993,942 17,328,608 M1 發放予子公司股利調整資本公積 - 12,983 - 12,983 - 12,983 M5 實際取得子公司部分權益 - ( 111,073 ( 26,688 ( 137,761 ) 6,404 ( 131,357 ) O1 子公司股東現金股利 ( 257 ) ( 257 ) D1 105 年度淨利 - 1,471,010 - 1,471,010 ( 57,296 ) 1,413,714 D3 105 年度其他綜合損益 ( 1,306 ) ( 173,675 ) 957,969 - 782,988 ( 15,731 ) 767,257 D5 105 年度綜合損益總額 - 1,469,704 ( 173,675 ) 957,969 - 2,253,998 ( 73,027 ) 2,180,971 Z1 105 年 12 月 31 日餘額 5,986,543 3,694,767 1,917,297 648,929 3,329,086 202,125 2,975,227 ( 290,088 ) 18,463,886 927,062 19,390,948 105 年度盈餘指撥及分配 B1 提列法定盈餘公積 - - 147,101 - ( 147,101 - B5 股東紅利-現金,每股 1.5 元 ( 897,981 ( 897,981 ( 897,981 ) B9 股東紅利-股票,每股 0.5 元 299,327 ( 299,327 - 分配後餘額 6,285,870 3,694,767 2,064,398 648,929 1,984,677 202,125 2,975,227 ( 290,088 ) 17,565,905 927,062 18,492,967 M1 發放予子公司股利調整資本公積 - 16,934 - 16,934 - 16,934 M5 處分子公司股權價格與帳面價值差額 - 2,058 - 2,058 - 2,058 M7 對子公司所有權權益變動 ( 73 ( 73 ) ( 25 ) ( 98 ) O1 子公司股東現金股利 ( 22 ) ( 22 ) B17 特別盈餘公積迴轉 ( 3,613 ) 3,613 - D1 106 年度淨利 - 2,273,428 - 2,273,428 26,958 2,300,386 D3 106 年度其他綜合損益 ( 5,561 ) ( 505,408 ) 235,264 - ( 275,705 ) ( 69,724 ) ( 345,429 ) D5 106 年度綜合損益總額 - 2,267,867 ( 505,408 ) 235,264 - 1,997,723 ( 42,766 ) 1,954,957 Z1 106 年 12 月 31 日餘額 $ 6,285,870 $ 3,713,759 $ 2,064,398 $ 645,316 $ 4,256,084 ( $ 303,283 ) $ 3,210,491 ( $ 290,088 ) $ 19,582,547 $ 884,249 $ 20,466,796 107 年 3 月 28 玉

25 106 年 及 105 12 月 31 106 年度 105 年度 營業活動之現金流量 A10000 本年度稅前淨利 $ 3,565,213 $ 2,637,556 A20010 收益費損項目 A20100 折舊費用 773,296 864,873 A20200 攤銷費用 69,374 67,065 A20400 透過損益按公允價值衡量之金融 資產利益 ( 2,490 ) ( 2,806 ) A20900 利息費用 292,916 306,622 A21200 利息收入 ( 18,238 ) ( 20,669 ) A21300 股利收入 ( 204,059) ( 214,462) A21900 股份基礎給付酬勞成本 9,926 15,002 A22500 處分及報廢不動產、廠房及設備 損失 44,580 18,185 A22700 處分投資性不動產利益 ( 270,125) - A23100 處分投資利益 ( 772 ) ( 616 ) A23500 金融資產減損損失 16,992 6,960 A23700 非金融資產減損損失 138,676 27,674 A24100 未實現外幣兌換利益 ( 44,128 ) ( 104,866) A29900 處分子公司利益-淨額 ( 2,271 ) - A30000 與營業活動相關之資產/負債變動數 A31110 持有供交易之金融資產 300,772 ( 577,384) A31130 應收票據 ( 261,456) ( 115,825) A31150 應收帳款 ( 1,032,422) ( 669,844) A31160 應收帳款-關係人 504 5,612 A31200 存 貨 ( 482,133) 374,032 A31240 其他流動資產 ( 77,365 ) ( 38,437 ) A31250 其他金融資產 171,675 147,346 A32150 應付帳款 290,398 125,733 A32160 應付帳款-關係人 10,781 16,697 A32180 其他應付款 340,586 204,068 A32200 負債準備 1,097 ( 163 ) A32230 其他流動負債 59,702 5,624 A32240 淨確定福利負債 ( 23,786 ) ( 32,746 ) A33000 營運產生之現金流入 3,667,243 3,045,231 A33100 收取之利息 17,658 25,308 A33500 支付之所得稅 ( 1,076,783) ( 1,053,922) AAAA 營業活動之淨現金流入 2,608,118 2,016,617 ( 接 次 頁 )

26 106 年度 105 年度 投資活動之現金流量 B00300 取得備供出售金融資產 ( $ 170,210) $ - B01400 以成本衡量之金融資產減資退回股款 2,916 - B02300 處分子公司淨現金流入 93,977 - B02700 取得不動產、廠房及設備 ( 3,417,722) ( 2,212,780) B02800 處分不動產、廠房及設備 43 15,045 B05500 處分投資性不動產 437,006 - B06600 其他金融資產(增加)減少 ( 10,365 ) 52,525 B06700 其他非流動資產(增加)減少 ( 2,538 ) 94 B07100 預付設備款(增加)減少 15,912 ( 7,062 ) B07600 收取之股利 204,059 214,462 BBBB 投資活動之淨現金流出 ( 2,846,922) ( 1,937,716) 籌資活動之現金流量 C00100 短期借款增加(減少) 1,613,864 ( 1,006,319) C00500 應付短期票券增加 165,053 11,899 C01600 舉借長期借款 2,921,040 2,949,725 C01700 償還長期借款 ( 697,718) ( 1,468,501) C04400 其他非流動負債增加 4,240 21,316 C04500 發放現金股利 ( 881,047) ( 675,469) C05400 取得子公司股權 - ( 131,357) C05600 支付之利息 ( 278,452) ( 311,780) C05800 非控制權益變動 ( 47 ) 6,147 CCCC 籌資活動之淨現金流入(流出) 2,846,933 ( 604,339) DDDD 匯率變動對現金及約當現金之影響 ( 348,033) ( 59,904 ) EEEE 本年度現金及約當現金增加(減少)數 2,260,096 ( 585,342) E00100 年初現金及約當現金餘額 6,226,264 6,811,606 E00200 年底現金及約當現金餘額 $ 8,486,360 $ 6,226,264 107 年 3 月 28 玉

27 (3) Audit Committee’s audit report Audit Committee’s Audit Report When producing the Company's 2017 business report, consolidated financial statement (including individual financial statement), and profit distribution motions, the board of directors commissioned Deloitte Taiwan to audit the financial statement and issue an audit report. The aforementioned business report, financial statement, and profit distribution proposal have been audited by this Audit Committee, and the committee does not note any discrepancies. Report is made according to Article 14-4 of the Securities and Exchange Act and Article 219 of the Company Act.

Please review accordingly.

To China Synthetic Rubber Corporation 2018 Annual General Meeting China Synthetic Rubber Corporation Audit Committee convener: Chih, Ching-Kang May 10, 2018

28 Matters for Approval Item 1. To approve 2017 Annul Business Report and Financial Statements. (Proposed by the Board of Directors) Description: 1. It is conducted according to Article 228 of the Company Act. 2. The 2017 Business Report, 2017 annual financial statements and consolidated financial statements have been approved by the 22nd meeting of the 16th term Board of Directors. The annual financial statements and consolidated statements have been audited by Certified Public Accountant Wu, Mei-Hui and Kuo, Cheng-Hung of Deloitte & Touch.

3. The aforementioned financial statements and business report have been reviewed by the Audit Committee. Please refer to page 6-27. 4. Please ratify.

Resolution: Item 2. The proposal for distribution of 2017 profits (Proposed by the Board of Directors) Description: 1. The Proposal for distribution of 2017 earnings is conducted according to Article 228 of the Company Act and Article 29 of the Articles of Incorporation. 2. The 2017 unappropriated retained earnings of previous years are NT$ 1,984,676,684. After adding actuarial gains and losses and other adjustment of NT$ (5,634,294), the adjusted unappropriated retained earnings are NT$ 1,979,042,390. By adding 2017 net profit of NT$ 2,273,428,648, and setting aside legal reverse of NT$ 227,342,865 and adding special capital reverse of NT$ 3,612,566, the total earnings available for distribution amounts to NT$ 4,028,740,739.

By retaining earnings of NT$ 2,268,697,172 not to distribute, the rest earnings of NT$ 1,760,043,567 is distributed. It is proposed to distribute stock dividends at NT$ 1 per share and cash dividends at NT$ 1.8 per share. The

29 distribution of cash dividends shall be accounted by dollars and rounded off to the integer. Fractional dividend amounts that are less than NT$1 shall be ranked from high to low in value and from old to new in account number, and they shall be adjusted in this order until the total amount of cash dividend distribution is met. 3. Upon the approval of the Annual Shareholders’ Meeting, the BOD will determine the ex-dividend date and distribute the dividend to each share based on the number of shareholding ration of shareholders on the record date of the ex-dividend. The cash dividend to each and every shareholder shall be paid in a whole number of New Taiwan Dollars.

Upon the approval of issuing new shares through increase capital approved by the Annual Shareholders’ Meeting and competent authority, the BOD will determine ex-right date for distribution. 4. Please refer to Annex 1 for earnings distribution proposal (Page 39). 5. The proposal has been approved by the 23rd meeting of the 16th term Board of Directors and been audited by the Audit committee. 6. Please review and ratify.

Resolution:

30 Matters for Discussion Item 1.Proposal for a new share issue through capitalization of earnings. (Proposed by the Board of Directors) Description: 1.The total capital stock of the Company are in the amount of NT$ 10 billion into 1,000,000,000 shares, at NT$10 par value each share, and may be issued in installments. Until the end of 2017, the Company has issued 628,586,987 shares, and the total paid-up capital are NT$ 6,285,869,870. The unissued capital stock are in the amount of NT$ 3,714,130,130 into 371,413,013 shares. 2. For replenishing capital and further development of business, the management plans to withdraw NT$ 628,586,990 from 2017 distributable earnings to issue new shares through capitalization of earnings.

It is proposed to issue 62,858,699 new shares, at NT$10 par value each share and dividends stocks will be calculated on the basis of 628,586,987 shares of capital stock issued in the end of 2017, 100 shares to be distributed without consideration for each 1000 shares held. 3. Upon the approval of the Annual Shareholders’ Meeting and the competent authority, the Board will determine ex-right date. The distributed shares are determined by the shareholding ratio of shareholders in the register of shareholders on the record date of the ex-right. Any shareholding of less than one share should be round off to one share or waived.

The fractional shares rounded off less than one share shall be distributed in cash. Fractional shares will be purchased by persons arranged by the Chairman as authorized by the Board.

4. The new shares are issued by means of non-physical securities and the shareholder rights and obligations of the new shares are the same as those of existing shares. 5. The proposal has been approved by the 23rd meeting of the 16th term Board of Directors. 6. Please vote on the matter. Resolution:

31 Item 2: Spin-off of the domestic Carbon Black Business (including assets, liabilities and business). (Proposed by the Board of Directors) Description: 1. For the purpose of transformation into an investment holding company and professional division of works, in order to enhance its competitiveness and operating performance, it is proposed to spin off and assign the business related to the domestic Carbon Black Business (including assets, liabilities and business, “Carbon Black Business”) to the Company’s wholly-owned subsidiary, Linyuan Advanced Materials Technology Co., Ltd.

(“LAMT”), which will issue new shares for the Company as consideration, through a spin off transaction (the “Spin-Off”). The Spin-Off record date is scheduled on September 30, 2018. The Spin-Off will not affect the structure of the Company’s reinvestments. 2. The value of the Carbon Black Business to be assigned through the Spin-Off is estimated at NTD1,600,000,000, and total amount of the 80,000,000 common shares, where every NTD20 of business value will be exchanged for one common share issued by LAMT, be exchanged. Any fraction of shares will be compensated in cash by LAMT.

3. The Company prepared the “Carbon Black Business Spin-Off Plan” (including LAMT’s articles of incorporation, the book value of the assets and liabilities to be spun off and the expert’s opinion on the reasonableness of the share exchange ratio in the Spin-Off) in accordance with the Business Mergers and Acquisitions Act, the Company Act and other relevant laws and regulations. Please refer to Annex 2 attached hereto (pages 40 to 51). 4. The Company engaged an independent expert, Mr. Hsu, Hao-Wen, CPA, to provide his opinion on the reasonableness of the share exchange ratio in the SpinOff for the Company.

The Spin-Off is an internal organizational change and therefore does not affect the Company’s shareholders’ equity. In addition, the total amount of the 80,000,000 new shares to be issued at NTD20 per share is equal to NTD1,600,000,000, which is the value of the relevant assets and liabilities to be assigned. Therefore, the share exchange ratio in the Spin-Off should be reasonable. For the independent expert’s opinion, please refer to Appendix 3 of Annex 2 attached hereto (pages 49 to 51).

32 5. It is proposed that, the 2018 annual general meeting of shareholders authorize the Board of Directors and/or the person designated thereby to handle matters in relation to the scope of the Carbon Black Business to be assigned, valuation (including assets, liabilities and business), the share exchange ratio (if any adjustment to such ratio is necessary) and other matters related to the Spin-Off (including but not limited to amendments to the Carbon Black Business SpinOff Plan and changes to timeline of the Spin-Off and the Spin-Off record date, administrative instructions from the competent authority, regulatory compliance changes in the objective circumstances, and other matters not covered herein in the future).

6. This proposal has been resolved by the Company’s 23rd meeting of the 16th Board of Directors. 7. Please vote on the matter. Resolution: Item 3: Spin-Off of the Biotechnology Business (including assets, liabilities and business). (Proposed by the Board of Directors) Description: 1. For the purpose of transformation into an investment holding company and professional division of works, in order to enhance its competitiveness and operating performance, it is proposed to spin off and assign the business related to the Biotechnology Business (including assets, liabilities and business) to the Company’s wholly-owned subsidiary to be newly established, Circular Commitment Company (provisional and subject to change, “CCMC”), which will issue new shares for the Company as consideration, through a spin off transaction (this “Spin-Off”).

The Spin-Off record date is scheduled on September 30, 2018. The Spin-Off will not affect the structure of the Company’s reinvestments.

2. The value of the Biotechnology Business to be assigned through the Spin-Off is estimated at NTD90,000,000, and total amount of the 9,000,000 common shares, where every NTD10 of business value will be exchanged for one common share issued by CCMC. Any fraction of shares will be compensated in cash by CCMC.

33 3. The Company prepared the “Biotechnology Business Spin-Off Plan” (including CCMC’s articles of incorporation, the book value of the assets and liabilities to be spun off and the expert’s opinion on the reasonableness of the exchange ratio in the Spin-Off) in accordance with the Business Mergers and Acquisitions Act, the Company Act and other relevant laws and regulations.

Please refer to Annex 3 attached hereto (pages 52 to 67). 4. The Company engaged an independent expert, Mr. Hsu, Hao-Wen, CPA, to provide his opinion on the reasonableness of the exchange ratio in the Spin-Off for the Company. The Spin-Off is an internal organizational change and therefore does not affect the Company’s shareholders’ equity. In addition, the total amount of the 9,000,000 new shares to be issued at NTD10 per share is equal to NTD90,000,000, which is the value of the relevant assets and liabilities to be assigned. Therefore, the exchange ratio in the Spin-Off should be reasonable.

For the independent expert’s opinion, please refer to Appendix 3 of Annex 3 attached hereto (pages 65 to 67).

5. It is proposed that, the 2018 annual general meeting of shareholders authorize the Board of Directors and/or the person designated thereby to handle matters in relation to the scope of the Biotechnology Business to be assigned, valuation (including assets, liabilities and business), the share exchange ratio (if any adjustment to such ratio is necessary) and other matters related to the Spin-Off (including but not limited to amendments to the Biotechnology Black Business Spin-Off Plan and changes to timeline of the Spin-Off and the Spin-Off record date, administrative instructions from the competent authority, regulatory compliance changes in the objective circumstances, and other matters not covered herein in the future).

In addition, such shareholders’ meeting will be deemed as the promoter meeting that enables CCMC’s incorporation. 6. This proposal has been passed by the Company’s 23rd meeting of the 16th Board of Directors.

7. Please vote on the matter. Resolution:

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